Unformatted text preview: December 31, 2009 Assets 175,000 Accounts payable 189,000 Nonrecourse mortgage 18,000 Capital: Mr. Able (16,000) Capital: Telax Inc. (16,000) Liabilities & equity 175,000 Both Mr. Able and Telex received a Schedule K-1 reporting their $21,000 distributive share of the ordinary business loss. Mr. Able does not materially participate in Abrax’s business and has only $1,800 of passive income from another passive activity. In 2010, Mr. Able is allocated $10,000 ordinary business income, Abrax makes no cash distributions, and there is no change in the amount of the LLC’s qualified nonrecourse financing. In 2010, Mr. Able has $2,500 of income from another passive activity. Required:  What amount does Mr. Able report on his 2009 tax return?  What amount does Telax Corporation report on their 2009 tax return?  What amount does Mr. Able report on his 2010 tax return?  What amount does Telax Corporation report on their 2010 tax return?...
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- Spring '09
- Balance Sheet, Generally Accepted Accounting Principles, Mr. Able